bottom reached!, page-61

DMAGNUS

LRS has an indepenent board ,at least 4 institutional shareholders , a similar market cap to MHM ,and reportedly has 3 potential world class deposits at exploration stage granted .

MHM has a process that is yet to be prove it can make profit , has a board made up the CEOs family and no institutional shareholders .

One was recently announced as having the potential to be the largest deposit of andrusalite in the world , another with Zircon , gold, and iron ore .

Question from the audience

What kind of percentage of income would you get for andalusite and gold compared with the other elements of your material?

Chris Gale

We looked at that initially, what can we extract quicker and as cheap as we can from that orebody, that was the iron, the gold and the andalusite. Harmony actually mapped this deposit in 2002 as an alluvial gold deposit. We put the markers over a million ounces of gold in this particular deposit, it runs about 0.3-0.5 grams and ends up in the mine as 53 micron fraction in the sand fraction so it’s going to be a bi-product for us. The iron we’ll sell at port, so we’re not talking about shipping this stuff to China. Current numbers we have about publicly in the market, the gold as I said is running 0.3-0.5g/t, we’re running at about 6-7% iron in there, the andalusite is 30% of the deposit, this will be the largest andalusite deposit in the world. Currently the Africans are producing andalusite themselves for about $400 a tonne, the Africans costs are about $200-230 a tonne, so we think we can produce it a lot cheaper than that, but the scoping study will be out in the next five or six weeks, we have a pretty good idea then.

Question from the audience

In your Scoping Study have you got any metallurgical tests?

Chris Gale

The Scoping Study is waiting for metallurgical test work now, it’s being done by Mineral Technologies in Queensland and Karrara, so we’re waiting for that to finalise it. There will be metallurgical met work testwork in the scoping study